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on Transport Economics |
| By: | Huse, Cristian |
| Abstract: | In the first year after the inception of the Swedish Green Car Rebate (GCR), green cars had carved over 25 percent market share in the new vehicle market, an effect of unprecedented scale if compared to recent policies incentivizing the purchase of fuel-efficient vehicles. By awarding vehicles satisfying certain emission criteria a rebate, but giving alternative fuel vehicles (AFVs, those able to run on alternative fuels) a more lenient treatment than regular fuel vehicles (RFVs, those able to run only on gasoline and diesel), the GCR created a regulatory loophole which led carmakers to increase the emissions of AFVs as compared to RFVs. This paper examines the impact of regulation on market developments comparing CO2 emissions (and fuel economy) of AFVs and RFVs. Once carmakers adjust their product lines to the policy, CO2 emissions of AFVs increased significantly as compared to those of RFVs, thus undermining the very objectives of the GCR. |
| Keywords: | Automobiles; Emissions; Environmental policy; Alternative fuel vehicles; Flexible-fuel vehicles; Fuel economy; Greenhouse gases; Regulation; Alternative fuels; Renewable fuels. |
| JEL: | H23 L51 L62 L98 Q42 Q48 Q53 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48909&r=tre |
| By: | Dai, Danielle; Weinzimmer, David |
| Abstract: | Employer-provided private shuttles have become a prominent part of the transportation network between San Francisco and Silicon Valley. As the Bay Area plans for transportation investments to meet sustainability goals and accommodate future population and employment growth, an understanding of the role of regional commuter shuttles becomes increasingly important. This study investigates the impacts of private shuttles on commute mode and residential location choice by conducting a travel time comparison and surveying shuttle riders. The authors find that the provision of shuttles and knowledge of shuttle stops influences both commute mode and residential location choice. Shuttles are an attractive option due to their time and cost savings compared to other modes. However, shuttles exacerbate the jobs-housing imbalance by enabling individuals to live farther from work. The extent to which location of shuttle stops influences residential location choice varies from person to person, though the vast majority of shuttle riders live within a short walk from the nearest shuttle stop. Policies should strike a balance between improved sustainability with existing land use patterns and better long-term regional transportation and land use planning. |
| Keywords: | Engineering, Social and Behavioral Sciences, Commuting, Land use planning, Mode choice, Residential location, San Francisco Bay Area, Shuttle buses, Silicon Valley |
| Date: | 2014–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt2jr7z01q&r=tre |
| By: | René Bohnsack (University of Amsterdam Business School - University of Amsterdam Business School); Jonatan Pinkse (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Ans Kolk (Amsterdam Business School - University of Amsterdam) |
| Abstract: | Sustainable technologies challenge prevailing business practices, especially in industries that depend heavily on the use of fossil fuels. Firms are therefore in need of business models that transform the specific characteristics of sustainable technologies into new ways to create economic value and overcome the barriers that stand in the way of their market penetration. A key issue is the respective impact of incumbent and entrepreneurial firms' path-dependent behaviour on the development of such new business models. Embedded in the literature on business models, this paper explores how incumbent and entrepreneurial firms' path dependencies have affected the evolution of business models for electric vehicles. Based on a qualitative analysis of electric vehicle projects of key industry players over a five-year period (2006-2010), the paper identifies four business model archetypes and traces their evolution over time. Findings suggest that incumbent and entrepreneurial firms approach business model innovation in distinctive ways. Business model evolution shows a series of incremental changes that introduce service-based components, which were initially developed by entrepreneurial firms, to the product. Over time there seems to be some convergence in the business models of incumbents and entrepreneurs in the direction of delivering economy multi-purpose vehicles. |
| Keywords: | Sustainable technology; business models, evolution; path dependencies; electric vehicles |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemptp:hal-00936886&r=tre |
| By: | Escobari, Diego; Jindapon, Paan |
| Abstract: | This paper shows how an airline monopoly uses refundable and non-refundable tickets to screen consumers who are uncertain about their travel. Our theoretical model predicts that the difference between these two fares diminishes as individual demand uncertainty is resolved. Using an original data set from U.S. airline markets, we find strong evidence supporting our model. Price discrimination opportunities through refund contracts decline as the departure date nears and individuals learn about their demand. |
| Keywords: | Price discrimination; Refund contracts; Airlines; Individual demand learning |
| JEL: | C23 D42 D82 L93 |
| Date: | 2014–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53629&r=tre |
| By: | Ciliberto, Federico; Zhang, Zhou |
| Abstract: | We use data from the US airline industry to estimate a model of entry deterrence. We model the interaction among airlines as a repeated static game, where we allow for a very general form of heterogeneity. We consider a menu of three alternative games that describe the strategic interaction among airlines: simultaneous and sequential move games, and a sequential move game with deterrence investments. Following Bernheim [1984], deterrence investments include all investment that raises barriers to entry, and for which the incumbent must incur some investment costs. We show that the profits that incumbents can make in the sequential game, both with and without deterrence investments, are larger than those that they can make if the game is played simultaneously. Thus, we find that on average it is profitable for all firms to deter new entrants, with the exception of United Airlines. Remarkably, United Airlines was under bankruptcy protection during the period of analysis, suggesting that its deterrence investments were not credible. Overall, we find that the data is explained better by a model where firms make deterrence investments. Thus, we cannot reject the hypothesis that incumbents deter entrants in the airline industry. |
| Keywords: | Multiple Equilibria, Entry Games, Heterogeneity, Deterrence, Airline Industry, Sequential Move Game, Simultaneous Move Game |
| JEL: | L1 |
| Date: | 2014–01–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53232&r=tre |
| By: | Frigant, Vincent; Miollan, Stéphane |
| Abstract: | The paper seeks to provide a quantitative and macroeconomic picture of the new geography of the automotive industry in Europe. Since ten new members joined the European Union in 2004, automakers and suppliers have changed their location strategies and now view the whole of Europe as a single fully integrated space. Using data on employment, production, trade and foreign control of affiliated firms, the paper measures the East-West relocation process. The first section studies the motor vehicle sector, highlighting a sharp rise in the activity levels of Central and Eastern European countries (CEEC), as well as the specific role that Germany plays. It is crucial to remember that motor vehicle manufacturing remains a key traditional economic activity for some of the larger Western European countries. The second section looks at the automotive parts sector. The CEECs’ growth is particularly impressive when consideration is given to employment, a variable largely driven by foreign firms’ decision to export much of their local production. At the same time, the offshoring process remains more or less selective even if it often revolves around labour-intensive activities – explaining in turn the creation today of embedded East-West networks. |
| Keywords: | automobile; Europe; deindustrialisation; relocation; offshoring; industry geography; auto parts industry |
| JEL: | F23 L23 L62 R12 |
| Date: | 2014–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53509&r=tre |